346. Navigating rate cuts and inflation: tactical strategies for a volatile market

FundCalibre - Investing on the go

This episode discusses the dynamics of fixed income investing, with Stuart Edwards, manager of the Invesco Tactical Bond fund, explaining how a tactical approach can help navigate volatile markets. He explains the fund’s flexible strategy, covering interest rate positioning, corporate bond opportunities, and emerging markets. We also break down the importance of a top-down macroeconomic perspective, combined with bottom-up credit analysis. With insights into how recent rate cuts and inflation trends impact bond markets, this discussion sheds light on where the risks and opportunities lie.

What’s covered in this episode:

• The three key components of the Invesco Tactical Bond fund
• How allocation has changed over the past year
• What combining macro awareness and stock selection means in practice
• How the manager builds the fund
• Why the UK is a fascinating space for investors
• The fund’s exposure to UK interest rates
• The key opportunities in the UK market
• Will UK inflation remain sticky in 2025?
• The Trump 2.0 effect on bond markets
• How the fund allocates to emerging markets
• The appeal of Mexican and Brazilian debt
• What is duration?
• How the fund’s duration exposure has changed over the the past year
• Where are the best opportunities today?

More about the fund: The Invesco Tactical Bond fund is the most flexible fund in Invesco’s fixed income range. It is designed to capitalise on all the resources within the team and invest across the whole fixed income opportunity set. The managers use an active style whereby risk can be continually adjusted according to market conditions and the level of return on offer.

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Please remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.